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Starbucks to Close Stores, Expand Overseas, and End Sandwich Sales

Date: 02-04-2008

Starbucks Corp. plans to shut down its 100 underperforming stores, slow down its new U.S. openings, and discontinue warm breakfast sandwiches at its stores. The move comes in the wake of reportedly lower first-quarter profits due to weaker business in the U.S. Starbucks’ previous goal of opening 1,600 stores in 2008 in the U.S. market has now come down to 1,175. “By reducing the number of openings, we expect to optimize our resources and potentially reduce cannibalization of our existing stores,” said Howard Schultz, founder and CEO of Starbucks. Shifting its focus to the international market, Starbucks plans to increase its overseas openings by 75 outlets to 975. The coffee maker also plans to stop offering breakfast sandwiches in the wake of customers’ complaints that the smell was overwhelming the aroma of coffee. “The scent of the warm sandwiches interferes with the coffee aroma in our stores,” said Schultz.
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 Starbucks  international markets  customers  coffee  United States  retailers  profits  plans  shut down  Howard Schultz

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